Free SAVE International CVS Practice Exam with Questions & Answers

The correct answer is B. $216,000 . The question is asking for the annual operating cost for Car C across the full 12-year service life , not the one-year annual fuel cost alone. In life-cycle cost analysis, SAVE defines life-cycle cost as the sum of initial cost, recurrent annual cost, single expenditures, and disposal cost or salvage value over a specified period. It also defines recurrent annual cost as the operation and maintenance cost that occurs throughout each year of service life.

For Car C , annual fuel use is calculated from the annual driving distance and fuel efficiency:

40,000 km per year ÷ 20 km per liter = 2,000 liters per year

Fuel costs $9.00 per liter , so the annual fuel cost is:

2,000 liters × $9 = $18,000 per year

The service life is 12 years , so the annual cost over the service life is:

$18,000 × 12 years = $216,000

Option A. $18,000 is only the annual cost for one year. Option C. $198,000 has no valid basis from the stated data. Option D. $36,000 would match neither Car C’s annual fuel use nor its service-life total. Tire replacement cost is excluded because the question asks for annual cost, not repair and replacement cost.

References/topics: Evaluation Phase; Life-Cycle Cost; Recurrent Annual Cost; Fuel Operating Cost; Service Life Costing.

The correct answers are A and C . A fine evaluation filter is used in the Evaluation Phase when the VM team needs a more disciplined and defensible method for screening ideas before selecting them for development. SAVE’s VM Job Plan states that evaluation factors and their relative importance should be agreed upon before ideas are evaluated, and that ideas are then ranked and rated against the most important evaluation criteria.

Option A is correct because the fine filter applies weighted relative importance to evaluation criteria. This prevents all criteria from being treated equally when some factors, such as cost, performance, risk, schedule, or customer impact, are more important than others. Option C is correct because this method increases rigor by moving the team from informal opinion to structured comparison. It supports rational selection of ideas for development and reduces bias, popularity-based decisions, and premature rejection of valuable alternatives.

Option B is incorrect because the purpose is not to slow the process or promote initial ideas. Option D may be a result of scoring, but it is not the primary distinguishing reason for using the fine filter.

References/topics: Evaluation Phase; Fine Evaluation Filter; Weighted Criteria; Ranking and Rating Ideas; Selection for Development.

The correct answers are A. Cost and D. Innovation . In the CVS®/Value Methodology program-management context, a balanced scorecard is used to measure organizational or program performance from more than one viewpoint, rather than judging success only by a single financial result. The traditional balanced scorecard framework includes financial, customer, internal process, and innovation/learning perspectives. Kaplan and Norton’s original balanced scorecard concept includes an innovation and learning perspective, which makes Innovation a direct match. ( Harvard Business Review )

Cost is also acceptable because it represents the financial perspective of the scorecard. Financial measures commonly include cost, profit, expense control, return, and other resource-based measures. ACCA explains the financial perspective as measuring traditional financial performance, including costs and related financial indicators. ( ACCA Global )

Design is incorrect because it is a technical or product-development activity, not a balanced scorecard perspective. Marketing is also incorrect because it may support customer strategy, but the actual scorecard perspective is normally called the customer perspective , not marketing. Therefore, the best two answers from the given options are Cost and Innovation .

References/topics: VM Programs; Balanced Scorecard; Financial/Cost Perspective; Innovation and Learning Perspective; Program Performance Measurement.

The correct answers are B and C . During the Development Phase , selected ideas are converted into workable VM proposals. This phase requires disciplined review because recommendations must be technically sound, cost-supported, practical, and aligned with project objectives. All VM study team members should review the proposals because VM is a team-based methodology. The proposal must reflect multidisciplinary input, including function, cost, performance, risk, schedule, constructability, operations, and implementation concerns. A proposal developed or checked by only one person may miss critical impacts.

A midpoint review with stakeholders is also appropriate. Stakeholder review helps confirm that the developing proposals are moving in a useful direction before the team spends additional time preparing final recommendations. It allows early correction of misunderstandings, validation of assumptions, and identification of acceptance issues. This improves the quality and credibility of the final presentation.

Option A is incorrect because controversial proposals should not be discarded automatically. They should be analyzed objectively if they improve value. Option D is incorrect because the facilitator guides the process but does not serve as the sole technical reviewer.

References/topics: Development Phase; VM Proposal Development; Team Review; Stakeholder Review; Value Study Process; Proposal Validation.

The most appropriate description of the Information Phase is to gather, organize, review, and transform data collected . In the Value Methodology Job Plan, the Information Phase begins the formal Value Study and is used to complete the data package that was initiated during the Pre-Study/Preparation work. The SAVE Value Methodology Standard identifies the Information Phase under the Value Study and lists its immediate output as completing the data package and modifying the scope when needed. ( UW Courses )

This phase is not merely administrative scheduling or management approval. Its purpose is to ensure the team has a clear factual basis before moving into Function Analysis. The project sponsor or designer may brief the team, the team asks questions based on prior data research, site visits may be completed, improvement targets such as value, cost, performance, and schedule are agreed, and the scope is reviewed based on new information. ( UW Courses )

Option A and B are mainly Pre-Study/Preparation activities. Option D is partially related, but too narrow because the Information Phase supports the entire study, not only Function Analysis.

References/topics: Information Phase; Value Methodology Job Plan; Data Package; Scope Review; Study Targets.

The correct answer is C. Higher order and basic functions . In FAST diagramming, the project scope is shown by vertical scope lines that define the portion of the function logic included in the value study. The left project scope line separates the broader reason for the study from the functions that are actually inside the study boundary.

The higher order function is placed outside the left scope line because it answers the “why” question for the basic function. It represents the larger objective or purpose that the basic function supports. FAST guidance states that highest-order functions appear outside the left scope line and to the left of the basic functions. ( )

The basic function is placed immediately to the right of the left scope line. It represents the primary purpose or mission of the subject under study. The FAST reference specifically states that basic functions immediately to the right of the left scope line represent the purpose or mission of the subject. ( )

Therefore, the left project scope line is located between the higher order function and the basic function .

References/topics: Function Analysis Phase; FAST Diagramming; Project Scope Line; Higher Order Function; Basic Function; How/Why Logic.

The correct answers are B. Maintenance, C. Production, and E. Engineering . The question is focused on how adding a new product will affect the current manufacturing process , so input must come from the functions that directly understand equipment capability, production workflow, process design, downtime risk, maintainability, tooling, tolerances, and operational constraints. SAVE’s Value Methodology Standard specifically states that VM can be applied to manufacturing processes , and that the Value Study Team should be a multidisciplinary group of experienced professionals and project stakeholders selected based on their expertise and experience with the project.

Production is essential because it understands line capacity, sequencing, labor flow, bottlenecks, cycle time, quality impact, and daily operating constraints. Maintenance is essential because a new product may require equipment changes, additional preventive maintenance, setup changes, spare parts, downtime planning, or reliability analysis. Engineering is essential because it understands product design, process capability, manufacturing methods, fixtures, tooling, specifications, and technical feasibility.

Marketing may provide market demand or customer preference input, but that is not the best answer when the question narrows the issue to the existing manufacturing process. Human resources may support staffing or training later, but it is not one of the three primary technical process stakeholders.

References/topics: Multidisciplinary Team; Stakeholder Expertise; Manufacturing Process VM; Team Composition.

The correct answers are A and B . During the Development Phase , the VM team is converting selected ideas into value alternatives, so any new information that affects assumptions, cost, risk, performance, stakeholder impact, or feasibility must be evaluated before the proposal is finalized. SAVE’s Study Guide explains that each Job Plan phase provides information needed for the next phase and that, as the team gains additional knowledge, a previous phase may be revisited. ( ) Therefore, the facilitator should first assess the information with the VM team to determine whether it changes the rationale, calculations, risk profile, or viability of any proposal.

The facilitator should also discuss the information with the study subject program manager because the information may affect scope, owner requirements, baseline assumptions, implementation constraints, or management expectations. In the Development Phase, value alternatives must be clearly written with supporting assumptions, calculations, vendor information, cost comparisons, and other information needed to convey the alternative. ( )

Option C is premature because new information does not automatically require a new proposal. Option D is incorrect because disregarding relevant information undermines proposal credibility and informed decision-making.

References/topics: Development Phase; Value Alternative Development; Facilitator Responsibilities; Proposal Validation; VM Team Coordination.

The correct answers are C and D . The end-of-workshop presentation is part of the Presentation Phase , whose objective is to obtain concurrence and commitment from the designer, project sponsor, and management to proceed with implementation. SAVE’s VM Job Plan identifies Presentation Phase activities as presenting an oral report, preparing the written report, and obtaining implementation commitments. ( UW Courses )

Therefore, the level of management involvement directly affects scheduling because the presentation must be arranged when the decision-making body, sponsor, designer, and appropriate managers are available. The standard states that the VM team presents recommendations to the decision-making body and uses interactive discussion to obtain approval or direction for more information. ( UW Courses )

The number of VM proposals developed also affects scheduling because more proposals require more time for explanation, supporting data, benefit analysis, cost/schedule impacts, risks, and implementation requirements. The Development Phase requires each proposed alternative to include technical data, cost and performance data, schedule impact, and implementation planning before presentation. ( UW Courses )

Team size and general participant count may affect logistics, but they are not the primary scheduling drivers for the formal final presentation.

References/topics: Presentation Phase; Development Phase; VM Proposals; Management Commitment; Implementation Planning.

The correct answer is D. Random Function Identification . In the Function Analysis Phase, the team first identifies and defines functions of the product, project, process, or service being studied. The function statement is normally written in the classic VM format: active verb + measurable noun . SAVE-related VM guidance describes this first step as identifying and defining functions using active verbs and measurable nouns, often referred to as Random Function Definition . ( UC Homepages )

This is why Random Function Identification is the best answer. It is the direct technique used to generate the initial list of functions before the team classifies, organizes, models, or evaluates those functions.

FAST is important, but it is not primarily the first technique for identifying individual functions. FAST is mainly used after functions are listed, to show logical How/Why relationships between functions and to build a function model. SAVE material describes FAST as a technique that illustrates relationships among functions. ( cdn..com )

Mind Mapping and Random Words are creativity tools, not the standard VM function-identification method.

References/topics: Function Analysis Phase; Random Function Definition; Function Identification; Verb-Noun Function Format; FAST Diagramming.